Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 19571 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6)(iii). Rule 19b–4(f)(6) 

also requires that the self-regulatory organization to 

give the Commission notice of its intent to file the 

proposed rule change, along with a brief description 

and text of the proposed rule change, at least five 

business days prior to the date of filing of the 

proposed rule change, or such shorter time as 

designated by the Commission. The Commission 

grants the Exchange’s request for a waiver of the 

five-day pre-filing requirement. 

12For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

13For purposes of calculating the 60-day period 

within which the Commission may summarily 

abrogate the proposed rule change under Section 

19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C), the 

Commission considers the period to commence on 

April 9, 2007, the date NYSE filed Amendment No. 

1 to the proposed rule change. 14 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Amendment No. 2 replaced and superseded the 

original filing and Amendment No. 1 in their 

entirety. 

4Amendment No. 4 superseded Amendment No. 

3 in its entirety. In Amendment No. 4, the Exchange 

made clarifying changes to Exhibit 5 and the 

purpose section, including reflecting a recent 

approval of an exchange rule that changed the 

current rule text. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the forgoing rule change does 

not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b–

4(f)(6) thereunder.10

NYSE has asked that the Commission 

waive the 30-day operative delay 

contained in Rule 19b–4(f)(6)(iii) under 

the Act.11 The Commission believes that 

waiver of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because the immediate removal of the 

temporary rule should eliminate 

potential confusion relating to the usage 

of ISOs on the Exchange. For this 

reason, the Commission designates the 

proposed rule change to be effective and 

operative upon filing with the 

Commission.12

At any time within 60 days of the 

filing of such proposed rule change the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors 

or otherwise in furtherance of the 

purposes of the Act.13

IV. Solicitation of Comments 

nterested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSE–2007–32 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2007–32. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of the filing also will be 

available for inspection and copying at 

the principal office of the Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NYSE–2007–32 and should 

be submitted on or before May 9, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7323 Filed 4–17–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55621; File No. SR–

NYSEArca–2006–86] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change and Amendments No. 1, 

2, 3, and 4 Thereto and Order Granting 

Accelerated Approval of the Proposed 

Rule Change as Modified by 

Amendments No. 2 and 4 Thereto 

Adopting Generic Listing Standards 

for Exchange-Traded Funds Based on 

International or Global Indexes or 

Indexes Described in Exchange Rules 

Previously Approved by the 

Commission as Underlying 

Benchmarks for Derivative Securities 

April 12, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on November 13, 2006, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been substantially prepared by the 

Exchange. On March 19, 2007, the 

Exchange filed Amendment No. 1 to the 

proposal. On March 20, 2007, the 

Exchange filed Amendment No. 2 to the 

proposal.3 On April 4, 2007, the 

Exchange filed Amendment No. 3 to the 

filing. On April 10, 2007, the Exchange 

filed Amendment No. 4 to the filing.4

This order provides notice of the 

proposal, as amended, and approves the 

proposal on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NYSE Arca, through its wholly owned 

subsidiary NYSE Arca Equities, Inc. 

(‘‘NYSE Arca Equities’’), proposes to 

amend its rules governing NYSE Arca, 

L.L.C. (also referred to as the ‘‘NYSE 

Arca Marketplace’’), the equities trading 

facility of NYSE Arca Equities. The 

Exchange proposes to amend NYSE 

Arca Equities Rules 5.2(j)(3), 5.5(g)(2), 

and 8.100 to include generic listing 

standards for Investment Company 


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19572 Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 240.19b–4(e). 

7When relying on Rule 19b–4(e), the SRO must 

submit Form 19b–4(e) to the Commission within 

five business days after the exchange begins trading 

a new derivative securities product. See 17 CFR 

240.19b–4(e)(2)(ii). See also Securities Exchange 

Act Release No. 40761 (December 8, 1998), 63 FR 

70952 (December 22, 1998). 

8See Securities Exchange Act Release No. 55269 

(February 9, 2007), 72 FR 7490 (February 15, 2007) 

(SR–Nasdaq–2006–050); Securities Exchange Act 

Release No. 55113 (January 18, 2007), 72 FR 3179 

(January 24, 2007) (SR–NYSE–2006–101); Securities 

Exchange Act Release No. 54739 (November 9, 

2006), 71 FR 66993 (November 17, 2006) (SR–

Amex–2006–78); and Securities Exchange Act 

Release No. 55018 (December 28, 2006), 72 FR 1040 

(January 9, 2007) (SR–Amex–2006–109) (making 

clarifying changes to the generic listing standards 

set forth in SR–Amex–2006–78). 

9See NYSE Arca Equities Rule 5.2(j)(3)(A)(i)(a)–

(b). 

10 In either case, an ETF, by its terms, may be 

considered invested in the securities of the 

underlying index to the extent the ETF invests in 

sponsored American Depositary Receipts (‘‘ADRs’’), 

Global Depositary Receipts (‘‘GDRs’’), or European 

Depositary Receipts (‘‘EDRs’’) that trade on 

exchanges with last-sale reporting of securities in 

the underlying index. 

11For an ETF to qualify for tax treatment as a 

regulated investment company, it must meet several 

requirements under the IRC, including 

requirements with respect to the nature and the 

value of the ETF’s assets. 

12See Commentary .01 to NYSE Arca Equities 

Rule 5.2(j)(3); Commentary .01 to NYSE Arca 

Equities Rule 8.100; Securities Exchange Act 

Release No. 44551 (July 12, 2001), 66 FR 37716 

(July 19, 2001) (SR–PCX–2001–14) (approving 

generic listing standards for Units and PDRs). 

13See, e.g., Securities Exchange Act Release No. 

53999 (June 15, 2006), 71 FR 35981 (June 22, 2006) 

(SR–NYSEArca–2006–30) (approving the trading of 

certain Wisdom Trade exchange-traded funds); and 

Securities Exchange Act Release No. 53230 

(February 6, 2006), 71 FR 7594 (February 13, 2006) 

(SR–PCX–2005–116) (approving the listing and 

trading of funds of iShares, Inc. based on certain 

MSCI country-specific indexes). 

Units (‘‘Units’’) and Portfolio Depositary 

Receipts (‘‘PDRs’’) (‘‘Units’’ and ‘‘PDRs’’

together referred to herein as ‘‘exchangetraded funds’’ or ‘‘ETFs’’) that are based 

on international or global indexes or on 

indexes described in exchange rules that 

have been previously approved by the 

Commission for the trading of ETFs and 

other index-based securities. The text of 

the proposed rule change is available at 

the Exchange, from the Commission’s 

Public Reference Room, and on NYSE 

Arca’s Web site (www.nysearca.com). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of, and basis for, 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item III below. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Arca Equities Rules 5.2(j)(3), 

5.5(g)(2), and 8.100 to include generic 

listing standards for series of Units and 

PDRs that are based on international or 

global indexes or on indexes described 

in rules previously approved by the 

Commission under Section 19(b)(2) of 

the Exchange Act 5 for the trading of 

ETFs, options, or other specified indexbased securities. This proposal would 

enable the Exchange to list and trade 

ETFs pursuant to Rule 19b–4(e) under 

the Exchange Act 6 if each of the 

conditions set forth in Commentary .01 

to NYSE Arca Equities Rule 5.2(j)(3) or 

Commentary .01 to NYSE Arca Equities 

Rule 8.100 is satisfied. Rule 19b–4(e) 

provides that the listing and trading of 

a new derivative securities product by a 

self-regulatory organization (‘‘SRO’’) 

shall not be deemed a proposed rule 

change, pursuant to paragraph (c)(1) of 

Rule 19b–4, if the Commission has 

approved, pursuant to Section 19(b) of 

the Exchange Act, the SRO’s trading 

rules, procedures, and listing standards 

for the product class that would include 

the new derivatives securities product, 

and the SRO has a surveillance program 

for the product class.7 Similar proposals 

for the New York Stock Exchange LLC 

(‘‘NYSE’’), The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’), and the American 

Stock Exchange LLC (‘‘Amex’’) have 

been approved by the Commission.8

Exchange-Traded Funds 

NYSE Arca Equities Rules 5.2(j)(3) 

and 5.5(g)(2) provide standards for 

initial and continued listing of Units, 

which are securities representing 

interests in a registered investment 

company that could be organized as a 

unit investment trust, an open-end 

management investment company, or a 

similar entity. The investment company 

must hold securities comprising, or 

otherwise based on or representing an 

interest in, an index or portfolio of 

securities, or the investment company 

must hold securities in another 

registered investment company that 

holds securities in such a manner.9

NYSE Arca Equities Rule 8.100 allows 

for the listing and trading on the 

Exchange of PDRs. PDRs represent 

securities based on a unit investment 

trust that holds the securities that 

comprise an index or portfolio 

underlying a series of PDRs. Pursuant to 

NYSE Arca Equities Rules 5.2(j)(3) and 

8.100, Units and PDRs must be issued 

in a specified aggregate minimum 

number in return for a deposit of 

specified securities and/or a cash 

amount. When aggregated in the same 

specified minimum number, Units and 

PDRs must be redeemable by the issuer 

for the underlying securities and/or 

cash. 

To meet the objective of providing 

investment returns that correspond to 

the price, dividend, and yield 

performance of the underlying index, an 

ETF may use a ‘‘replication’’ strategy or 

a ‘‘representative sampling’’ strategy 

with respect to the ETF portfolio.10 An 

ETF using a replication strategy invests 

in each stock of the underlying index in 

about the same proportion as that stock 

is represented in the index itself. An 

ETF using a representative sampling 

strategy generally invests in a significant 

number but not all of the component 

securities of its underlying index, and 

will hold stocks that, in the aggregate, 

are intended to approximate the full 

index in terms of key characteristics, 

such as price/earnings ratio, earnings 

growth, and dividend yield. 

In addition, an ETF portfolio may be 

adjusted in accordance with changes in 

the composition of the underlying index 

or to maintain compliance with 

requirements applicable to a regulated 

investment company under the Internal 

Revenue Code (‘‘IRC’’).11

Generic Listing Standards for ExchangeTraded Funds 

The Commission has previously 

approved generic listing standards for 

ETFs based on indexes that consist of 

stocks listed on U.S. exchanges.12 In 

general, the proposed criteria for the 

underlying component securities in the 

international and global indexes are 

similar to those for the domestic 

indexes, but with modifications as 

appropriate for the issues and risks 

associated with non-U.S. securities. 

In addition, the Commission has 

previously approved rules governing the 

listing and trading of ETFs based on 

international indexes—those based on 

non-U.S. component stocks—as well as 

global indexes—those based on nonU.S. and U.S. component stocks.13

The Commission has also approved 

rules of other exchanges that permit the 

listing pursuant to Rule 19b–4(e) of 

index-based derivatives where the 

Commission had previously approved 

rules contemplating the trading of 


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14See NYSE Arca Equities Rule 5.2(j)(6); 

Securities Exchange Act Release No. 52204 (August 

3, 2005), 70 FR 46559 (August 10, 2005) (SR–PCX–

2005–63) (approving generic listing standards for 

index-linked securities). 

15See NYSE Arca Equities Rules 5.2(j)(3), 

5.5(g)(2), and 8.100. 16 15 U.S.C. 781(b) or (g). 

specified index-based derivatives on the 

same index, on the condition that all of 

the standards set forth in those orders, 

in particular with respect to 

surveillance sharing agreements, 

continued to be satisfied.14

The Exchange believes that adopting 

additional generic listing standards for 

ETFs and applying Rule 19b–4(e) 

thereto should fulfill the intended 

objective of that rule by allowing those 

ETFs that satisfy the proposed generic 

listing standards to commence trading 

without the need for the public 

comment period and Commission 

approval. The proposed rules have the 

potential to reduce the time frame for 

bringing ETFs to market, thereby 

reducing the burdens on issuers and 

other market participants. The failure of 

a particular ETF to comply with the 

proposed generic listing standards 

under Rule 19b–4(e) would not, 

however, preclude the Exchange from 

submitting a separate filing pursuant to 

Section 19(b)(2) requesting Commission 

approval to list and trade a particular 

ETF. 

Requirements for Listing and Trading 

ETFs Based on International and Global 

Indexes or Previously Approved Indexes 

ETFs listed pursuant to these 

proposed generic listing standards for 

international and global indexes, and for 

indexes described in rules previously 

approved by the Commission for trading 

of options or other derivative securities, 

would be traded, in all other respects, 

under the Exchange’s existing trading 

rules and procedures that apply to 

ETFs 15 and would be covered under the 

Exchange’s surveillance program for 

derivative products. The Exchange 

represents that its surveillance 

procedures are adequate to properly 

monitor the trading of Units and PDRs 

listed pursuant to the proposed new 

listing standards and those traded 

pursuant to UTP. Specifically, the 

Exchange will rely on its existing 

surveillance procedures governing 

derivative products, which apply both 

to Exchange-listed Units and PDRs and 

those traded pursuant to UTP. In 

addition, the Exchange also has a 

general policy prohibiting the 

distribution of material, non-public 

information by its employees. 

To list an ETF pursuant to the 

proposed generic listing standards for 

international or global indexes, and for 

indexes described in exchange rules 

previously approved by the Commission 

for trading of options or other derivative 

securities, the index underlying the 

Units or PDRs must satisfy all the 

conditions contained in proposed 

Commentary .01 to NYSE Arca Equities 

Rule 5.2(j)(3) (for Units) or proposed 

Commentary .01 to NYSE Arca Equities 

Rule 8.100 (for PDRs). However, for 

Units or PDRs traded on the Exchange 

pursuant to UTP, only the provisions of 

paragraphs (c), (e), (f), (g), and (h) of 

Commentary .01 to NYSE Arca Equities 

Rule 5.2(j) and NYSE Arca Equities Rule 

8.100(c) and paragraphs (c), (e), (f), and 

(g) of Commentary .01 to NYSE Arca 

Equities Rule 8.100 would apply. These 

paragraphs relate to trading increments, 

trading hours, dissemination of IIV, 

implementation of surveillance 

procedures, information circulars, and 

prospectus delivery. 

As with the existing generic standards 

for ETFs based on domestic indexes, 

these generic listing standards are 

intended to ensure that stocks with 

substantial market capitalization and 

trading volume account for a substantial 

portion of the weight of an index or 

portfolio. While the standards in this 

proposal are based on the standards 

contained in the current generic listing 

standards for ETFs based on domestic 

indexes, they have been adapted as 

appropriate to apply to international 

and global indexes. 

As proposed, the definition section of 

each of NYSE Arca Equities Rules 

5.2(j)(3) and 8.100 would be revised to 

include definitions of U.S. Component 

Stock and Non-U.S. Component Stock. 

These new definitions would provide 

the basis for the standards for indexes 

with either domestic or international 

stocks, or a combination of both. A 

‘‘Non-U.S. Component Stock’’ would 

mean an equity security that is not 

registered under Section 12(b) or 12(g) 

of the Exchange Act,16 and that is issued 

by an entity that (1) is not organized, 

domiciled, or incorporated in the 

United States, and (2) is an operating 

company (including a real estate 

investment trust) or income trust, but 

excluding an investment trust, unit 

trust, mutual fund, or derivative). This 

definition is designed to create a 

category of component stocks that are 

issued by companies that are not based 

in the United States, but that also are 

not subject to oversight through 

Commission registration, and would 

include sponsored GDRs and EDRs. This 

definition would appear in an amended 

introductory paragraph in NYSE Arca 

Equities Rule 5.2(j)(3) and new 

subsection (4) of NYSE Arca Equities 

Rule 8.100(a). 

A ‘‘U.S. Component Stock’’ would 

mean an equity security that is 

registered under Section 12(b) or 12(g) 

of the Exchange Act or an ADR, the 

underlying equity security of which is 

registered under Section 12(b) or 12(g) 

of the Exchange Act. An ADR with an 

underlying equity security that is 

registered pursuant to the Exchange Act 

is considered a U.S. Component Stock 

because the issuer of that underlying 

security is subject to Commission 

jurisdiction and must comply with 

Commission rules. This definition 

would appear in an amended 

introductory paragraph in NYSE Arca 

Equities Rule 5.2(j)(3) and new 

subsection (3) of NYSE Arca Equities 

Rule 8.100(a). 

The Exchange proposes that, to list a 

Unit or PDR based on an international 

or global index or portfolio pursuant to 

the generic listing standards, such index 

or portfolio must meet the following 

criteria: 

• Component stocks that in the 

aggregate account for at least 90% of the 

weight of the index or portfolio each 

shall have a minimum market value of 

at least $100 million (proposed NYSE 

Arca Equities Rules 5.2(j)(3), 

Commentary .01(a)(B)(1), and 8.100, 

Commentary .01(a)(B)(1)); 

• Component stocks that in the 

aggregate account for at least 90% of the 

weight of the index or portfolio each 

shall have a minimum worldwide 

monthly trading volume during each of 

the last six months of at least 250,000 

shares (proposed NYSE Arca Equities 

Rules 5.2(j)(3), Commentary .01(a)(B)(2) 

and 8.100, Commentary .01(a)(B)(2)); 

• The most heavily weighted 

component stock may not exceed 25% 

of the weight of the index or portfolio 

and the five most heavily weighted 

component stocks may not exceed 60% 

of the weight of the index or portfolio 

(proposed NYSE Arca Equities Rules 

5.2(j)(3), Commentary .01(a)(B)(3) and 

8.100, Commentary .01(a)(B)(3)); 

• The index or portfolio shall include 

a minimum of 20 component stocks 

(proposed NYSE Arca Equities Rules 

5.2(j)(3), Commentary .01(a)(B)(4) and 

8.100, Commentary .01(a)(B)(4)); and 

• Each U.S. Component Stock in the 

index or portfolio shall be listed on a 

national securities exchange and shall 

be an NMS Stock as defined in Rule 600 

of Regulation NMS under the Exchange 

Act, and each Non-U.S. Component 

Stock in the index or portfolio shall be 

listed on an exchange that has last-sale 

reporting (proposed NYSE Arca Equities 

Rules 5.2(j)(3), Commentary .01(a)(B)(5) 

and 8.100, Commentary .01(a)(B)(5)). 


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17Market value is calculated by multiplying the 

total shares outstanding by the price per share of 

the component stock. 18See supra note 12. 

The Exchange believes that these 

proposed standards are reasonable for 

international and global indexes, and, 

when applied in conjunction with the 

other listing requirements, would result 

in the listing and trading on the 

Exchange of ETFs that are sufficiently 

broad-based in scope and not readily 

susceptible to manipulation. The 

Exchange also believes that the 

proposed standards would result in 

ETFs that are adequately diversified in 

weighting for any single security or 

small group of securities, which should 

significantly reduce concerns that 

trading in an ETF based on an 

international or global index could 

become a surrogate for the trading of 

securities not registered in the United 

States. 

The Exchange further notes that, 

while these standards are similar to 

those for indexes that include only U.S. 

Component Stocks, they differ in certain 

important respects and are generally 

more restrictive, reflecting greater 

concerns over portfolio diversification 

with respect to ETFs investing in 

components that are not individually 

registered with the Commission. First, 

in the proposed standards, component 

stocks that in the aggregate account for 

at least 90% of the weight of the index 

or portfolio each shall have a minimum 

market value of at least $100 million, 

compared to a minimum market value 

of at least $75 million for indexes with 

only U.S. Component Stocks.17 Second, 

in the proposed standards, the most 

heavily weighted component stock may 

not exceed 25% of the weight of the 

index or portfolio, in contrast to a 30% 

standard for an index or portfolio 

comprised of only U.S. Component 

Stocks (in the case of Units, but not 

PDRs, which has a 25% standard). 

Third, in the proposed standards, the 

five most heavily weighted component 

stocks may not exceed 60% of the 

weight of the index or portfolio, 

compared to a 65% standard for indexes 

comprised of only U.S. Component 

Stocks. Fourth, the minimum number of 

component stocks in the proposed 

standards is 20, in contrast to a 

minimum of 13 in the standards for an 

index or portfolio with only U.S. 

Component Stocks. Finally, the 

proposed standards require that each 

Non-U.S. Component Stock included in 

the index or portfolio be listed and 

traded on an exchange that has last-sale 

reporting. 

The Exchange also proposes to modify 

Commentary .01(b)(2) to NYSE Arca 

Equities Rule 5.2(j)(3) and Commentary 

.01(b)(3) to NYSE Arca Equities Rule 

8.100 to require that the index value for 

an ETF listed pursuant to the proposed 

standards for international and global 

indexes be widely disseminated by one 

or more major market data vendors at 

least every 60 seconds during the time 

when the ETF shares trade on the NYSE 

Arca Marketplace. In contrast, the index 

value for an ETF listed pursuant to the 

existing standards for domestic indexes 

must be disseminated at least every 15 

seconds during the trading day. This 60- 

second standard reflects limitations, in 

some instances, on the frequency of 

intra-day trading information with 

respect to Non-U.S. Component Stocks 

and that in many cases, trading hours 

for overseas markets overlap only in 

part, or not at all, with NYSE Arca 

Marketplace trading hours. 

In addition, Commentary .01(c) to 

NYSE Arca Equities Rule 5.2(j)(3) and 

Commentary .01(c) to NYSE Arca 

Equities Rule 8.100 are being modified 

to define the term ‘‘Intraday Indicative 

Value’’ (‘‘IIV’’) as the estimate, updated 

at least every 15 seconds, during the 

Core Trading Session (9:30 a.m. to 4 

p.m., Eastern Time), and, if applicable 

the Opening Session (4 a.m. to 9:30 

a.m., Eastern Time) of the value of a 

share of each ETF, for ease of reference 

in these rules and also in NYSE Arca 

Equities Rules 5.5(g)(2)(b) and 

8.100(e)(2)(ii) regarding continued 

listing standards. The Exchange also 

proposes to clarify in Commentary 

.01(c) to NYSE Arca Equities Rule 

5.2(j)(3) and Commentary .01(c) to 

NYSE Arca Equities Rule 8.100 that the 

IIV would be updated at least every 15 

seconds during regular market hours 

and during any pre-market trading 

sessions for the ETF to reflect changes 

in the exchange rate between the U.S. 

dollar and the currency in which any 

component stock is denominated. In 

addition, if the IIV does not change 

during some or all of the period when 

trading is occurring on the Exchange, 

then the last official calculated IIV must 

remain available throughout Exchange 

trading hours. 

The Exchange is proposing that it may 

designate a series of Units or PDRs for 

trading during the Opening Session or 

Late Trading Session (4 p.m. to 8 p.m., 

Eastern Time) as long as the index value 

and IIV dissemination requirements of 

Commentary .01(b)(2) and (c) to NYSE 

Arca Equities Rule 5.2(j)(3) and 

Commentary .01(b)(3) and (c) to NYSE 

Arca Equities Rule 8.100 are met. If 

there is no overlap with the trading 

hours of the primary market trading the 

underlying components of a series of 

Units or PDRs, the Exchange may 

designate such series for trading in the 

Opening Session as long as the last 

official calculated IIV remains available. 

Although the IIV does not need to be 

calculated during the Exchange’s Late 

Trading Session, the last official 

calculated IIV must also remain 

available during such session. 

The Exchange is also proposing to add 

a subsection (i) to Commentary .01 to 

NYSE Arca Equities Rule 5.2(j)(3) and a 

subsection (h) to Commentary .01 to 

NYSE Arca Equities Rule 8.100 

regarding the creation and redemption 

process for ETFs and compliance with 

Federal securities laws for ETFs listed 

pursuant to the new generic listing 

standards. These new subsections 

would apply to Units listed pursuant to 

Commentary .01(a)(B) or (C) to NYSE 

Arca Equities Rule 5.2(j)(3) and for PDRs 

listed pursuant to Commentary .01(a)(B) 

or (C) to NYSE Arca Equities Rule 8.100. 

They would require that the statutory 

prospectus or the application for 

exemption from provisions of the 

Investment Company Act of 1940 for the 

ETF being listed pursuant to these new 

standards must state that the ETF must 

comply with the federal securities laws 

in accepting securities for deposits and 

satisfying redemptions with redemption 

securities, including that the securities 

accepted for deposits and the securities 

used to satisfy redemption requests are 

sold in transactions that would be 

exempt from registration under the 

Securities Act of 1933. 

The Commission has approved 

generic standards providing for the 

listing pursuant to Rule 19b–4(e) of 

other derivative products based on 

indexes described in rules previously 

approved by the Commission under 

Section 19(b)(2) of the Exchange Act.18

The Exchange proposes to include in 

the generic standards for the listing of 

Units and PDRs, in new Commentary 

.01(a)(C) to NYSE Arca Equities Rule 

5.2(j)(3) and Commentary .01(a)(C) to 

NYSE Arca Equities Rule 8.100, indexes 

described in rule changes that have been 

approved by the Commission in 

connection with the trading of options, 

PDRs, Units, Index-Linked 

Exchangeable Notes, or Index-Linked 

Securities. The Exchange believes that 

the application of that standard to ETFs 

is appropriate because the underlying 

index would have been subject to 

Commission review in the context of the 

approval of rules contemplating the 

trading of other derivatives. This new 

generic standard would be limited to 

stock indexes and portfolios and would 

require that each component stock be 

either: (1) A U.S. Component Stock that 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 19575 

19See Securities Exchange Act Release No. 52809 

(November 18, 2005), 70 FR 71590 (November 29, 

2005) (SR–PCX–2005–108) (approving change to 

listing standards for Units to allow ‘‘one or more 

major market data vendors’’ to satisfy dissemination 

requirements rather than ‘‘Reporting Authority’’). 

20 15 U.S.C. 78f(b). 

21 15 U.S.C. 78f(b)(5). 

is listed on a national securities 

exchange and is an NMS Stock as 

defined in Rule 600 of Regulation NMS 

under the Exchange Act; or (2) a NonU.S. Component Stock that is listed and 

traded on an exchange that has last-sale 

reporting. 

The Exchange proposes to modify the 

initial and continued listing standards 

relating to disseminated information 

relating to ETFs to formalize in the rules 

existing best practices for providing 

equal access to material information 

about the value of ETFs. Pursuant to 

NYSE Arca Equities Rules 5.2(j)(3)(A)(v) 

and NYSE Arca Equities 8.100(e)(1)(ii), 

prior to approving an ETF for listing, the 

Exchange would obtain a representation 

from the ETF issuer that the net asset 

value (‘‘NAV’’) per share would be 

calculated daily and made available to 

all market participants at the same time. 

Proposed NYSE Arca Equities Rules 

5.5(g)(2)(b) and 8.100(e)(2)(ii) would set 

forth the trading halt parameters for 

ETFs. In particular, the proposed rules 

specifically provide that, if the IIV (as 

defined in Commentary .01 to NYSE 

Arca Equities Rule 5.2(j)(3) and 

Commentary .01 to NYSE Arca Equities 

Rule 8.100) or the index value 

applicable to that series of ETFs is not 

being disseminated as required when 

the Exchange is the listing market, the 

Exchange may halt trading during the 

day in which the interruption to the 

dissemination of the IIV or the index 

value occurs. If the interruption to the 

dissemination of the IIV or the index 

value persists past the trading day in 

which it occurred, the Exchange would 

halt trading no later than the beginning 

of the trading day following the 

interruption. 

In addition, proposed NYSE Arca 

Equities Rules 5.5(g)(2)(b) and 

8.100(e)(2)(ii) have been modified to 

provide that the Exchange: (1) Would 

halt trading in a series of ETFs if the 

circuit breaker parameters of Rule 7.12 

have been reached; and (2) in exercising 

its discretion to halt trading in a series 

of ETFs, would consider factors such as 

the extent to which trading in the 

underlying securities is not occurring or 

whether other unusual conditions or 

circumstances detrimental to the 

maintenance of a fair and orderly 

market are present, in addition to other 

relevant factors. 

The Exchange is proposing other 

minor and clarifying changes to NYSE 

Arca Equities Rules 5.2(j)(3) and 8.100. 

The standards set forth in Commentary 

.01(a)(A) to NYSE Arca Equities Rule 

5.2(j)(3) and Commentary .01(a)(A) to 

NYSE Arca Equities Rule 8.100 are 

being modified to make the wording of 

each requirement consistent. In 

addition, Commentary .01(a)(A)(5) to 

each of NYSE Arca Equities Rules 

5.2(j)(3) and 8.100 would be modified to 

reflect the adoption of Regulation NMS. 

Proposed Commentary .01(b)(4) to 

NYSE Arca Equities Rule 5.2(j)(3) and 

Commentary .01(b)(4) to NYSE Arca 

Equities Rule 8.100 would be added to 

make sure that an entity that advises 

index providers or calculators has in 

place procedures designed to prevent 

the use and dissemination of material 

non-public information regarding the 

index underlying the ETF. 

The Exchange is also proposing the 

following clean-up changes to NYSE 

Arca Equities Rule 8.100 in order to 

make it consistent with NYSE Arca 

Equities Rule 5.2(j)(3). The Exchange 

proposes changing the term ‘‘Reporting 

Authority’’ to ‘‘one or more major 

market data vendors’’ in Commentary 

.01(c) to NYSE Arca Equities Rule 

8.100.19 Also, Commentary .01(c) to 

NYSE Arca Equities Rules 5.2(j)(3) and 

8.100 would be modified to clarify that 

the obligation to disseminate an IIV 

applies to Units and PDRs that are listed 

or traded on the Exchange (which 

would include Units or PDRs traded 

pursuant to UTP). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Exchange Act,20 in 

general, and furthers the objectives of 

Section 6(b)(5),21 in particular, in that it 

is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Exchange Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Exchange 

Act. Comments may be submitted by 

any of the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2006–86 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2006–86. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro/shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of NYSE Arca. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NYSEArca–2006–86 and 

should be submitted on or before May 

9, 2007. 


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19576 Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 

22 In approving this rule change, the Commission 

notes that it has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

23 15 U.S.C. 78f(b)(5). 

24 15 U.S.C. 78s(b)(1). 

25 17 CFR 240.19b–4. 

26The Commission notes, however, that the 

failure of a particular ETF to meet these generic 

listing standards would not preclude the Exchange 

from submitting a separate proposed rule change to 

list and trade the ETF. 

27See Securities Exchange Act Release No. 55269 

(February 9, 2007), 72 FR 7490 (February 15, 2007) 

(SR–Nasdaq–2006–050); Securities Exchange Act 

Release No. 55113 (January 18, 2007), 72 FR 3179 

(January 24, 2007) (SR–NYSE–2006–101); and 

Securities Exchange Act Release No. 54739 

(November 9, 2006), 71 FR 66993 (November 17, 

2006) (SR–Amex–2006–78). 

28 15 U.S.C. 78k–1(a)(1)(C)(iii). 

29See proposed NYSE Arca Equities Rules 

5.2(j)(3), Commentary .01(b)(2) and 8.100, 

Commentary .01(b)(3). If an index or portfolio value 

does not change for some of the time that the ETF 

trades on the Exchange, the last official calculated 

value must remain available throughout Exchange 

trading hours. 

30See proposed NYSE Arca Equities Rules 

5.2(j)(3)(A)(v) and 8.100(e)(1)(ii). 

31See proposed NYSE Arca Equities Rules 

5.2(j)(3), Commentary .01(c) and 8.100, 

Commentary .01(c). 

32See id. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

After careful review, the Commission 

finds that the proposed rule change, as 

amended, is consistent with the 

requirements of the Exchange Act and 

the rules and regulations thereunder 

applicable to a national securities 

exchange.22 In particular, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Exchange Act 23 in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. 

Currently, the Exchange must file a 

proposed rule change with the 

Commission pursuant to Section 

19(b)(1) of the Exchange Act 24 and Rule 

19b–4 thereunder 25 to list and trade any 

ETF based on an index comprised of 

foreign securities. The Exchange also 

must file a proposed rule change to list 

and trade ETFs based on indexes or 

portfolios described in rule changes that 

have previously been approved by the 

Commission as underlying benchmarks 

for derivative securities. However, Rule 

19b–4(e) provides that the listing and 

trading of a new derivative securities 

product by an SRO will not be deemed 

a proposed rule change pursuant to Rule 

19b–4(c)(1) if the Commission has 

approved, pursuant to Section 19(b) of 

the Exchange Act, the SRO’s trading 

rules, procedures, and listing standards 

for the product class that would include 

the new derivative securities product, 

and the SRO has a surveillance program 

for the product class. The Exchange’s 

proposed rules for the listing and 

trading of ETFs pursuant to Rule 19b–

4(e) based on (1) certain indexes with 

components that include foreign 

securities or (2) indexes or portfolios 

previously described in exchange rules 

that have been approved by the 

Commission as underlying benchmarks 

for derivative securities, fulfill these 

requirements. Use of Rule 19b–4(e) by 

NYSE Arca to list and trade such ETFs 

should promote competition, reduce 

burdens on issuers and other market 

participants, and make such ETFs 

available to investors more quickly.26

The Commission previously has 

approved generic listing standards for 

other exchanges that are substantially 

similar to those proposed here by NYSE 

Arca.27 This proposal does not appear to 

raise any novel regulatory issues. 

Therefore, the Commission finds that 

NYSE Arca’s proposal is consistent with 

the Exchange Act on the same basis that 

it approved the other exchanges’ generic 

listing standards for ETFs based on 

international or global indexes or on 

indexes or portfolios described in 

exchange rules that have been 

previously approved by the Commission 

as underlying benchmarks for derivative 

securities. 

Proposed Commentary .01(a)(A) and 

(B) to NYSE Arca Equities Rules 5.2(j)(3) 

and 8.100 establish standards for the 

composition of an index or portfolio 

underlying an ETF. These requirements 

are designed, among other things, to 

require that components of an index or 

portfolio underlying the ETF are 

adequately capitalized and sufficiently 

liquid, and that no one security 

dominates the index. The Commission 

believes that, taken together, these 

standards are reasonably designed to 

ensure that securities with substantial 

market capitalization and trading 

volume account for a substantial portion 

of any underlying index or portfolio, 

and that when applied in conjunction 

with the other applicable listing 

requirements, will permit the listing and 

trading only of ETFs that are sufficiently 

broad-based in scope to minimize 

potential manipulation. The 

Commission further believes that the 

proposed listing standards are 

reasonably designed to preclude NYSE 

Arca from listing and trading ETFs that 

might be used as surrogate for trading in 

unregistered securities. The requirement 

that each component security 

underlying an ETF be an NMS Stock (in 

the case of a U.S. Component Stock) or 

listed on an exchange and subject to 

last-sale reporting (in the case of a NonU.S. Component Stock) also should 

contribute to the transparency of the 

market for these ETFs. 

The proposed generic listing 

standards will permit NYSE Arca to list 

and trade an ETF if the Commission has 

previously approved an SRO rule 

change that contemplates listing and 

trading a derivative product based on 

the same underlying index. NYSE Arca 

would be able to rely on that earlier 

approval order, provided that: (1) The 

securities comprising the underlying 

index consist of U.S. Component Stocks 

or Non-U.S. Component Stocks, as set 

forth in proposed NYSE Arca Equities 

Rules 5.2(j)(3), 8.100(a)(3), and 

8.100(a)(4); and (2) NYSE Arca complies 

with the commitments undertaken by 

the other SRO set forth in the prior 

order, including any surveillancesharing arrangements with a foreign 

market. 

The Commission believes that NYSE 

Arca’s proposal is consistent with 

Section 11A(a)(1)(C)(iii) of the Exchange 

Act,28 which sets forth Congress’ finding 

that it is in the public interest and 

appropriate for the protection of 

investors and the maintenance of fair 

and orderly markets to assure the 

availability to brokers, dealers, and 

investors of information with respect to 

quotations for and transactions in 

securities. The Exchange’s proposal 

requires the value of the index or 

portfolio underlying an ETF based on a 

global or international index to be 

disseminated at least once every 60 

seconds during Exchange trading 

hours.29 Furthermore, these generic 

listing standards provide that the issuer 

of an ETF must represent that it will 

calculate the NAV and make it available 

daily to all market participants at the 

same time.30 In addition, an IIV, which 

represents an estimate of the value of a 

share of each ETF, must be updated and 

disseminated at least once every 15 

seconds during the time an ETF trades 

on the Exchange.31 The IIV will be 

updated to reflect changes in the 

exchange rate between the U.S. dollar 

and the currency in which any index or 

portfolio component stock is 

denominated.32 When there is no 

overlap with the trading hours of the 

primary market or markets trading the 

underlying components of an ETF, 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices 19577 

33 In addition, NYSE Arca Equities Rule 7.34 sets 

forth trading halt procedures when the Exchange 

trades ETFs pursuant to UTP. 

34See e.g., Securities Exchange Act Release No. 

54997 (December 21, 2006), 71 FR 78501 (December 

29, 2006) (SR–NYSEArca–2006–77). 

35See supra note 27. 

36 15 U.S.C. 78s(b)(2). 

37 Id. 

38 17 CFR 200.30–3(a)(12). 

NYSE Arca may trade such ETF during 

the Opening Session without an IIV 

being updated, as long as the last official 

calculated IIV remains available. 

Although the IIV is not calculated 

during the Late Trading Session, the last 

official calculated IIV must also remain 

available during such session. The 

Commission believes that the proposed 

rules regarding the dissemination of the 

index value and the IIV are reasonably 

designed to promote transparency in the 

pricing of ETFs and thus are consistent 

with the Exchange Act. 

Similarly, the Exchange’s trading halt 

rules are reasonably designed to prevent 

trading in an ETF when transparency 

cannot be assured. Proposed NYSE Arca 

Equities Rule 5.5(g)(2)(b) provides that, 

when the Exchange is the listing market, 

if the IIV or index value applicable to an 

ETF is not disseminated as required, the 

Exchange may halt trading during the 

day in which the interruption occurs. If 

the interruption continues, the 

Exchange will halt trading no later than 

the beginning of the next trading day.33

This proposed rule is substantially 

similar to those recently adopted by 

other exchanges and found by the 

Commission to be consistent with the 

Exchange Act.34

In approving this proposal, the 

Commission relied on NYSE Arca’s 

representation that its surveillance 

procedures are adequate to properly 

monitor the trading of the Units and 

PDRs listed pursuant to the proposed 

new listing standards or traded on a 

UTP basis. This approval is conditioned 

on the continuing accuracy of that 

representation. 

Acceleration 

The Commission finds good cause for 

approving the proposed rule change, as 

amended, prior to the 30th day after the 

date of publication of the notice of the 

amended proposal in the Federal 

Register. The Commission notes that 

NYSE Arca’s proposal is substantially 

similar to other proposals that have 

been approved by the Commission.35

The Commission does not believe that 

NYSE Arca’s proposal raises any novel 

regulatory issues and, therefore, that 

good cause exists for approving the 

filing before the conclusion of a noticeand-comment period. Accelerated 

approval of the proposal will expedite 

the listing and trading of additional 

ETFs by the Exchange, subject to 

consistent and reasonable standards. 

Therefore, the Commission finds good 

cause, consistent with Section 19(b)(2) 

of the Exchange Act,36 to approve the 

proposed rule change, as amended, on 

an accelerated basis. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Exchange Act,37

that the proposed rule change (SR–

NYSEArca–2006–86), as amended, be, 

and it hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.38

Nancy M. Morris, 

Secretary. 

[FR Doc. E7–7324 Filed 4–17–07; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

Public Federal Regulatory 

Enforcement Fairness Hearing; Region 

I Regulatory Fairness Board 

The U.S. Small Business 

Administration (SBA) Region I 

Regulatory Fairness Board and the SBA 

Office of the National Ombudsman will 

hold a National Regulatory Fairness 

Hearing on Tuesday, May 1, 2007, at 1 

p.m. The forum will take place at the 

Rhode Island Convention Center, 1 

Sabin Street, Room 558, Providence, RI 

02903. The purpose of the meeting is for 

Business Organizations, Trade 

Associations, Chambers of Commerce 

and related organizations serving small 

business concerns to report experiences 

regarding unfair or excessive Federal 

regulatory enforcement issues affecting 

their members. 

Anyone wishing to attend or to make 

a presentation must contact Norm 

Deragon, in writing or by fax in order to 

be placed on the agenda. Norm Deragon, 

Public Information Officer, SBA, 

Providence District Office, 380 

Westminster Street, Room 511, 

Providence, RI 02903, phone (401) 528–

4561, Ext. 4576 and fax (401) 528–4539, 

e-mail: Norm.deragon@sba.gov. 

For more information, see our Web 

site at http://www.sba.gov/ombudsman. 

Matthew Teague, 

Committee Management Officer. 

[FR Doc. E7–7363 Filed 4–17–07; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

FAA Approval of Noise Compatibility 

Program 14 CFR Part 150; Spirit of St. 

Louis Airport, Chesterfield, MO 

AGENCY: Federal Aviation 

Administration, DOT. 

ACTION: Notice. 

SUMMARY: The Federal Aviation 

Administration (FAA) announces its 

findings on the noise compatibility 

program submitted by St. Louis County 

under the provisions of 49 U.S.C. (the 

Aviation Safety and Noise Abatement 

Act, hereinafter referred to as ‘‘the Act’’) 

and 14 CFR part 150. These findings are 

made in recognition of the description 

of Federal and nonfederal 

responsibilities in Senate Report No. 

96–52 (1980). On December 12, 2006, 

the FAA determined that the noise 

exposure maps submitted by St. Louis 

County under Part 150 were in 

compliance with applicable 

requirements. On April 6, 2007, the 

FAA approved the Spirit of St. Louis 

Airport noise compatibility program. All 

but one of the recommendations of the 

program was approved. 

DATES: Effective date: The effective date 

of the FAA’s approval of the Spirit of St. 

Louis Airport noise compatibility 

program is April 6, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Mark Schenkelberg, 901 Locust, Kansas 

City, Missouri, 816–329–2645. 

Documents reflecting this FAA action 

may be reviewed at this same location. 

SUPPLEMENTARY INFORMATION: This 

notice announces that the FAA has 

given its overall approval to the noise 

compatibility program for Spirit of St. 

Louis Airport, effective April 6, 2007. 

Under section 47504 of the Act, an 

airport operator who has previously 

submitted a noise exposure map may 

submit to the FAA a noise compatibility 

program which sets forth the measures 

taken or proposed by the airport 

operator for the reduction of existing 

non-compatible land uses and 

prevention of additional non-compatible 

land uses within the area covered by the 

noise exposure maps. The Act requires 

such programs to be developed in 

consultation with interested and 

affected parties including local 

communities, government agencies, 

airport users, and FAA personnel. 

Each airport noise compatibility 

program developed in accordance with 

Federal Aviation Regulations (FAR) Part 

150 is a local program, not a Federal 

program. The FAA does not substitute 

its judgment for that of the airport 


pwalker on PROD1PC71 with NOTICES